One Reason You Should Always
Use a Buyer's Agent
A SHORT RECAP OF THE DOJ RULING
The big change in real estate commissions affects how much the seller pays and the agent representing the buyer earns. In the past, the seller paid a sum that was split between the listing and buyer's brokerages. The new rules stipulate that the seller is not required to pay the buyer's agent but can choose to.
With this new ruling, sellers may decide not to pay the buyer's agent or could pay a smaller amount. Buyers have been told for years that using a buyer's agent is "free" to them. The dynamic is different now so buyers and their agents should discuss this before viewing homes.
Some buyers will decide to buy a home unrepresented or resort to working directly with the listing agent (in states where dual-agency is legal.)
MY ONE REASON TO ALWAYS USE A BUYER'S AGENT
Several years ago I was contacted by a woman who found a house online. She had fallen in love with it and we made an appointment to see it.
The house was super cute but overpriced - the time was pre-Covid and sales were sluggish. She decided to make an offer on the house and told me what price she wanted to offer.
My response was, "That's the price you can buy it for, so we'll start much lower." I knew the house was overpriced and had been marketed for many months. We ended up getting the house for slightly lower than her original bid would have been. A delighted client!
Now - what if she hadn't called me but had spoken directly with the listing agent?
Here's that conversation. The buyer tells the listing agent what she'll bid, and the agent, looking concerned, says, "Oh my, that's very low. I think you should offer at least X amount." The negotiations continue and the buyer pays what she thinks is a good price.
I can't say exactly how much money I saved her, but I believe it was around $30,000. I am not disparaging dual agents (I've done it a few times over 26 years) but this is how it occurred.
FINAL THOUGHTS
We have a different market now and buyers need an agent more than ever. Trying
to get an offer presented without representation is walking a tightrope. Who will guide buyers with pricing, multiple offers, paperwork, inspections, attorneys, timelines, and other advice during this highly charged time?
A serious discussion with your buyer's agent before starting the home search gives you a solid foundation for moving forward. There are many ways in which the buyer's agent can be paid. The buyer needs to investigate and understand the new way of doing business - it could save you more than you know!
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